Fatty Acid prices in the European market are largely influenced by developments in major exporting nations like Indonesia and Malaysia. Over the preceding months, Fatty Acid prices surged significantly, making it challenging for international buyers to trade in substantial volumes. This rapid escalation led to thin trading activity and 鈥渘eed basis鈥� buying. This rapid escalation led to thin trading activity and "need basis" buying, resulting in a surplus within the domestic markets of these exporting nations.
This surplus was reflected in the decline in the export volume of palm oil, as reported by the inspection company AmSpec Agri Malaysia. Specifically, exports of Malaysian palm oil products fell x.xx from xxx,xxx tonnes during November x-xx to xxx,xxx tonnes during December x-xx, according to AmSpec Agri Malaysia.
To remain competitive and stimulate demand from importing countries, a price correction was necessary. As a result, Fatty Acid prices in...
